Shelter Afrique eyes Nigerian market to raise cash for lending
Shelter Afrique headquarters in Upper Hill, Nairobi. PHOTO | FILE
Nairobi-based multilateral housing lender Shelter Afrique is to raise cash through the Nigerian bond market for additional loans to clients.
In an e-mail to the Business Daily on Wednesday, company managing director James Mugerwa said the proceeds from the bond will be used for onward lending to housing developers.
Earlier, the company had disclosed in its latest annual report that it would seek to raise $100 million (equivalent to Sh10.5 billion or 20 billion Naira) in Nigeria by the end of the year.
Shelter Afrique has in the past raised finances through bonds in Kenya and through the West Africa Securities Exchange (BRVM).
The lender plans to open three regional offices. They will be located in Lusaka (Zambia), Kinshasa (the Democratic Republic of Congo) and Abidjan in Ivory Coast.
Mr Mugerwa was reacting to a story on the latest credit rating of the financial institution by New York-based Moody’s.
Moody’s rated the bank stable, but warned of the risk it faces with non-performing loans and concentration of assets in a few countries.
The stable rating is based on moderate capitalisation, shareholder support and low debt ratio.
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